Electrolux agreed to buy GE Appliances for 3.3 billion US dollars

Kiran Rapaka

Sep 9, 2014 11:14 IST

The Swedish company Electrolux agreed to buy a home-appliances unit of General Electric Company of Louisville for 3.3 billion US dollars in cash. The agreement was done on 8 September 2014. This acquisition would enable Electrolux to compete with Whirlpool in US Market. The combination of Electrolux and GE's appliance businesses would represent a combined market share of over 26% of the American major appliances market according to data from consultancy Euromonitor. It will outdistance Whirlpool, which commands over 25% of the US market. Electrolux said it would continue to use the GE Appliances brand.

About the GE-Electrolux Deal• GE is selling all the smaller businesses as it is concentrating on its heavy industrial businesses such as jet engines, power turbines, and oil-sector services.• The deal comes amid a wave of consolidation among makers of home appliances such as dish washers, washing machines, and cookers.• The GE deal gives the Swedish company a great market position in North America with a combined market share of 40%, on par with that of market leader Whirlpool.• Electrolux gains economies of scale increasingly important in the appliance sector.• The purchase of GE's Appliance's business - including cookers, refrigerators, air conditioners and water heaters - will more than double Electrolux's sales in the US market from the 31.9 billion crowns (4.5 billion US dollars) it had in 2013.• With this deal Electrolux will get access to both North and South America in a very good way and will become very strong in all of the Americas.

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